Dubai’s jewellery sector is anticipating a shift in consumer behaviour after the official introduction of 14K gold pricing in the UAE, a move expected to attract buyers seeking affordable ornaments and those purchasing diamond-studded pieces. The Dubai Jewellery Group (DJG), which represents around 600 industry members, announced the pricing category last week, marking the first time 14K gold has been formally listed in the “City of Gold.”
On Thursday morning, 14K was priced at Dh300.25 per gram, placing it more than Dh200 below the cost of 24K gold and nearly Dh85 lower than 18K. With this, 14K has become the most affordable gold option available in the UAE, widening the market for cost-conscious buyers at a time when global gold prices have reached historic highs.
Jewellers say the new category is likely to resonate strongly with customers who already favour diamond or lab-grown diamond jewellery, where gold serves as a structural component rather than the primary value driver. Anil Dhanak, managing director of Kanz Jewels, noted that 14K gold offers stronger durability for mountings while helping customers manage budgets without sacrificing visual appeal. “For such buyers, 14K offers more durable mountings and lower entry price points without impacting the look of the piece,” he said.
Retailers also believe the introduction will draw younger shoppers, first-time buyers and expatriates from markets where 14K gold is already common. Chirag Vora, managing director of Bafleh Jewellers, said the lower cost is likely to encourage higher unit sales across the industry. He pointed out that the new pricing tier allows retailers to introduce clearer categories for consumers: 22K for traditional designs, 18K for fashion-oriented collections and 14K for everyday wear.
The shift comes at a time when demand for gold jewellery in the UAE has softened. According to World Gold Council data, jewellery consumption fell to 6.3 tonnes in the third quarter of 2025 — a five-year low — as buyers grappled with record-high prices. Demand dropped 10 per cent year-on-year and 18 per cent compared to the previous quarter, marking the weakest performance since the same period in 2020.
High gold prices have pushed some shoppers toward diamond-studded and lifestyle-focused jewellery, a trend supported by evolving tastes. Shamlal Ahamed, managing director for international operations at Malabar Gold and Diamonds, said younger customers increasingly prefer lightweight, modern pieces suited to everyday use. He added that even traditional buyers are showing interest in contemporary designs, reflecting a broader transformation in consumer preferences.
Industry leaders expect the introduction of 14K pricing to play a role in stabilising demand and expanding market access as shoppers seek value-driven alternatives amid elevated global gold rates.
